What is the percent change, rounded to the nearest tenth, if 72 is decreased to 45?

How Much Have I Saved? Portfolio

avanturin [10]

The time value of money calculation can be performed using formula equations or online calculators.

The correct responses are;

1) Option 3

2) Option 2

3) The difference in principal is approximately $8,000

The difference in interest earned is approximately $2,977.87

4) It is better to invest more money at the beginning of the 30 years

Reasons:

Option 1: Present value = 0

Amount invested per month, A = $25/month

The Annual Percentage Rate, APR, r = 3.25%

Number of years = 30

The future value of an annuity is given by the formula;

$\displaystyle FV_{A} = \mathbf{A \cdot \left (\frac{ \left(1 + \frac{r}{m} \right)^{m\cdot t} - 1}{\frac{r}{m} } \right)}$

In option 1, m = 12 periods per year

Therefore;

$\displaystyle FV_{A} = 25 \times \left (\frac{ \left(1 + \frac{0.0325}{12} \right)^{12 \times 30} - 1}{\frac{0.0325}{12} } \right) \approx \mathbf{15,209.3}$

Contribution = $25 × 12 × 30 = $9,000

Total interest earned = $15,209.3 - $9,000 = $6,209.3

Final balance = $15,209.3

Option 2: Present value = 0

Amount, A = $75/quarter

m = 4 periods per year

The Annual Percentage Rate, APR = 4.00%

Therefore;

The effective interest rate is therefore;

$\displaystyle r_{eff} = \left(1 + \frac{0.04}{4} \right)^4 - 1 \approx \mathbf{0.04060401}$

$\displaystyle FV_{A} = 75 \times \left (\frac{ \left(1 + \frac{0.04060401}{4} \right)^{4 \times 30} - 1}{\frac{0.04060401}{4} } \right) \approx 17,437.7$

Using an online calculator, FV = $17,467.04

Contribution = $75 × 4 × 30 = $9,000

Total interest earned = $17,467.04 - $9,000 = $8,467.04

Final balance = $17,467.04

Option 3: Present value = $1,000

APR = 6.25%

m = 12 period per year

Number of years, t = 30 years

Therefore;

$\displaystyle FV = \left (1 + \frac{0.0625}{12} \right)^{12 \times 30} \approx \mathbf{6,489.17}$

Contribution = $1,000

Total interest earned = $6,489.17 - $1,000 = $5,489.17

Final balance = $6,489.17

The table of values is therefore;

$\begin{tabular}{|c|c|c|c|}Option \# &Contribution &Total Interest Earned&Final Balance\\1&\$9,000&\$6,209.3 & \$15,209.3\\2&\$9,000&\$8,467.04 &\$17,467.04\\3&\$1,000&\$5,489.17&\$6,489.17\end{array}\right]$

1) The option that has the least amount invested are option 3

Option 3 investment plan is a present value of $1,000, invested for 30 years at 6.25% APR compounded monthly.

2) Option 2 yielded the highest amount at the end of 30 years, given that the APR is higher than the APR for option 1, although the amount invested over the period are the same.

The basis of option 2 investment plan is $75 invested quarterly at 4.00% APR compounded monthly for 30 years.

3) The difference in the principal invested for the highest and lowest final balance is $9,000 - $1,000 = $8,000

The difference in the interest earned is; $8,467.04 - $5,489.17 = $2,977.87

4) In option 1 the present value is zero, therefore zero amount was invested at the beginning.

The interest to investment ration is 6,209.3:9,000 ≈ 0.7:1

In option 3, all the money was invested at the beginning.

The interest to investment ratio of option 3 is; 5,489.17:1,000 ≈ 5.5:1

Given that the interest to investment ratio, which is the return on investment is larger when more money is saved at the beginning as in option 3, it is better to invest more money at the beginning.

Learn more about future value of an annuity here:

brainly.com/question/8243704

3 0

3 years ago

Find -3/7 divided by -15/1

posledela

Answer:

1/35

Step-by-step explanation:

-3/7 / -15/1 =

3/7 * 1/15 =

3 / 105 =

1/35

6 0

3 years ago

Suppose that a point (X,Y) us chosen at random from the rectangle S defined as follows: S={(x,y) : 0<= x <=2 and 1<=y&l

mrs_skeptik [129]

For a 19 foot scale find the frequency of a note to the frequency of the preceding note?

7 0

3 years ago

Bernardo and Ogechi were asked to find an explicit formula for the sequence 1,8,64,512,

Artist 52 [7]

Answer:

Bernardo

Step-by-step explanation:

7 0

3 years ago

A student of the author earned grades of 92, 83, 77, 84, and 82 on herfive regular tests. She earned grades of 88 on the final e

goblinko [34]

The class is weighted as follows:

60% Regular Tests

10% Final Exam

15% Project

15% Homework

The total weighted points possible for the class are as follows:

(100+100+100+100+100)*.6 + 100*.1 + 100*.15 + 100*.15 = 340

To calculate her individual final weighted grade we plug in her scores for each category and complete the following computation:

(92+83+77+84+82)*.6 + 88*.1 + 95*.15 + 77*.15 = 285.4

So her weighted grade percent would be 285.4/340 = 83.9% which is a B.

8 0

3 years ago